Tesla’s Domination In The Automobile Industry Is Just Beginning- Here’s How It Became The Most Valued Car Company In The World

LuxuryJune 17, 2020

By far and large, last week’s biggest headline announced Tesla’s shares rising to $1,000. Following this, the company marked its market capitalization for over $185 million. After this phenomenal win for the car conglomerate, Tesla has officially become the most valuable car company in the world.

This move made the company worth more than Toyota. In fact, Tesla boasts a value higher than General Motors, Ford and Fiat Chrysler combined. It has only been 16 years since Tesla’s inception. So, how did this company overtake all other car giants in the business in less than two decades?

A couple of days after peaking at its all-time high, Toyota was back on top with the highest shares. But, that doesn’t take away from the fact that Tesla has covered a pretty long distance in a short time. Above that, it also changed the nature of the car industry single-handedly.

Unsplash | Tesla has succeeded in being one of the topmost valued car company in the world

What Is Tesla Up To?

One of the main factors for electric vehicles to be easily accessible is for the battery prices to drop below $100 per kWh. Below this point, electric cars will likely become cheaper than internal combustion engines.

Battery prices depend widely on Cobalt, a rare metal that is found in huge reserves in the Democratic Republic of Congo. However, retrieving it from this part of the world comes with issues aplenty, as serious child labor goes into mining the metal. The company has been successful in striking a deal with the Chinese government to build its latest Model 3 containing lithium iron phosphate batteries.

Unsplash | Tesla seems to be in talks with CATL as of recent

In a similar fashion to Apple’s iPhone, Tesla has caught the traditional car manufacturing world off-guard. With its latest car Model 3, the company has been targeting the executive market. This major money-making move has actively attacked BMW, Volkswagen, and Mercedes-Benz, the three companies that reigned the executive market.

Model 3 recently outsold every model of BMW, Audi, and Mercedes sales in America last year.

How Did Tesla’s Share Rise?

Recently conversation about Tesla’s “million-mile battery” has been all over the place. At almost the same time, a Chinese company named CATL claimed that it could manufacture a battery that could run up to 1.2 million miles.

The company did not, in any manner, confirm that it would be in business with Tesla. However, the company has been pushing into China and is in talks with CATL. Hence, there remains ongoing speculation over the correlation of both companies making similar announcements at about the same time.

Unsplash | Its innovation and future-some perspective has given the company the prestige it holds today

So, how did Tesla become the most valued car in the world, after less than two decades in the field? Simple. It looked into the future and took a bet on something innovative. Making an early bet on EVs is the smartest move that the company has made. Creeping up the alley of luxury cars, Tesla’s success isn’t going away any time soon. In fact, it is bound to rise once again- and soon.